Bulgaria Rejects Gazprom Bid To Raise Prices

(RFE/RL)
6 January 2006 -- Bulgaria's energy minister says his country rejects an attempt by Russia's Gazprom to raise the price it charges for its gas.

Bulgaria's domestic consumption is almost totally dependent on Russian gas. The country is also a transit route to its neighbors Turkey, Greece, and Macedonia.

Gazprom pays transit fees to Bulgaria in the form of gas priced at around $83 per 1,000 cubic meters. For additional gas, Bulgaria pays $257 dollars per 1,000 cubic meters.

Bulgarian officials say Gazprom is pushing Bulgaria to switch to a system under which it pays transit fees in cash and Bulgaria buys all its gas at market prices.

Energy and economy minister Rumen Ovcharov said today the offer is "unacceptable."

Gazprom officials were not available for comment today, a public holiday in Russia.

A row over gas prices led Russia to cut supplies to Ukraine on 1 January. The dispute was resolved with the signing of a new five-year deal on 4 January.

(Reuters/AFP/btv.bg)

Gas Facts

Click on the map for an enlarged image.

Ukraine consumes 70 billion cubic meters (bcm) of gas per year. It produces 20 bcm of its own gas, has a signed contract to import 40 bcm from Turkmenistan, and in 2005 was getting 29 bcm from Russia as payment for transit of Russian gas.

Ukraine sells some 7 bcm of gas a year to the West and places some in underground storage facilities. These facilities can hold 34.5 bcm.